SHORT TERM: rally continues, DOW +55
Overnight the Asian markets gained 1.2%. Europe opened higher and gained 0.9%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported higher: 339k v 336k, as was the Trade deficit: $41.8bn v $38.8bn. The market opened one point above yesterday’s record SPX 1782 close. It then made a new high at SPX 1785 in the opening minutes, dipped to 1780 by 10am, then rallied to 1791 (clearing the OEW 1779 pivot) by 11:30. After a small dip to SPX 1787 by noon, the market rallied to 1792 just before a 1791 close.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.25%. Bonds gained 17 ticks, Crude was flat, Gold rallied $15, and the USD was flat. Medium term support is now at the 1779 and 1699 pivots, with resistance at the 1828 pivot. Tomorrow: the NY FED and Export/Import prices at 8:30, Industrial production at 9:15, and Wholesale inventories at 10am.
The market opened higher today, dipped, and then made new all time highs nearing the close. With the SPX trading above 1786, it has cleared the tough 1779 pivot, and has now set its sights on the OEW 1828 pivot. The short term count suggests the market is still in Minor 3 of Intermediate wave v. And Minor 3 has already exceeded the length of Minor 1: 1792-1761 v 1773-1746. Industrial production numbers tomorrow.
Short term support is now at the 1779 pivot and SPX 1746, with resistance at SPX 1810 and the 1828 pivot. Short term momentum spent most of the day in extremely overbought condition, suggesting a pullback can now occur at any time. The short term OEW charts remain positive with the reversal level now SPX 1775. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market